Web3 Will Be Unrecognizable In 10 Years: Its Growth Path

Zinger Key Points
  • Web3 growth by 2028 driven by investments despite economic concerns.
  • Lex Sokolin emphasizes Web3's need for real economic activity beyond finance.

Web3, the next iteration of the internet involving decentralization and blockchain technology, is expected to witness massive growth by 2028 according to a recent report from HTF Market Intelligence.

The report states that the growth will be driven by new investments and increased research & development spending, despite higher interest rates and a potential economic slowdown. The report points to an increase in decentralized applications from a number of different industries including finance, healthcare and more.

The decentralized applications will offer users a more transparent, efficient and secure experience while surfing the web. Companies like Coinbase Global Inc COIN, Meta Platforms Inc META and others are actively investing in the Web3 space.

Although, some investors worry that Web3 currently lacks "real economic activity." Generative Ventures partner Lex Sokolin said that Web3 and blockchain’s focus on financial services leads to projects like Terra Luna, lots of derivatives, and eccentric business leaders like Sam Bankman-Fried, but not a lot of real economic value, such as companies providing services and products.

"Only after you have the economy do you get finance to save, to pay, to bank to lend. All of that is there to service the actual economic output," Sokolin said in an interview with Decrypt. "Then DeFi, NFTs, digital objects and markets, all of that just comes there to support the beautiful and interesting things that people make."

With that being said, Sokolin also noted that the recent advancements in AI could increase the need to transition from Web2 to Web3. He said that Generative Ventures is already invested in two Web3 companies, but is seeking to add more Web3 companies to its portfolio.

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